Consolidation Determination and Findings for Datacenter Facility Operations

This document is a Consolidation Determination and Findings (VAAM M807-C) for consolidating eight separate datacenter facility operations (DFO) contracts into a single unified contract. The Department of Veterans Affairs (VA), Technology Acquisition Center, seeks to consolidate procurement of DFO services for enterprise datacenters located in Austin, Texas and Philadelphia, Pennsylvania, supporting critical computing functions for approximately 18 million veterans nationwide. The consolidated requirement will be solicited as a small business set-aside on the General Services Administration (GSA) Multiple Award Schedule (MAS) under NAICS code 541512 (Computer Systems Design Services), with a small business size standard of $34 million in average annual receipts. The performance period consists of a 12-month base period from the date of award plus four 12-month option periods, with an estimated total contract value exceeding $2 million.

The consolidation is justified based on substantial quantifiable benefits, including managerial cost savings of 17% from the eight prior contract actions, estimated administrative cost savings from eliminating duplicative contract management, parts economy of scale savings of 10%, and contractor labor efficiency savings of 18%. Market research conducted via Requests for Information identified 10 technically capable respondents (7 large businesses, 2 small businesses, and 1 Service-Disabled Veteran-Owned Small Business), supporting a reasonable expectation of competitive offers from capable small businesses. The VA conducted stakeholder notifications with the SBA Procurement Center Representative and affected incumbent small business concerns. The consolidated approach mitigates operational risks by establishing single-point accountability, unified performance standards, and coordinated emergency response for critical IT infrastructure supporting veteran healthcare, crisis support, and financial systems processing over $1 million per day in veteran benefits. The determination concludes that consolidation is necessary and justified in accordance with RFO FAR 7.107-2(a).